Italy’s Minister of Enterprises and Made in Italy, Adolfo Urso, announced that Baku Steel has submitted the best offer among three bidders for the troubled Taranto steel plant, one of Europe’s largest steelworks, according to AFP.
Backed by the state-owned Azerbaijan Investment Company, Baku Steel competed against India’s Jindal Steel and U.S.-based Bedrock Industries. State commissioners are expected to formally request authorization to negotiate with Baku Steel. The offer amount has not been disclosed.
The Italian government took over the steelworks in February 2024 after it was declared insolvent, aiming to safeguard 8,100 jobs. Previously, ArcelorMittal, which held a 62pct stake, refused to inject new funds, leading to a debt of over USD 3.2 bln.
Once one of Europe’s largest steelmakers, the company, formerly known as Ilva, faced years of controversy and disputes. Currently under state administration, the Taranto facility has been operating at a reduced capacity of around 2 mln tons per year, well below its peak of 10 mln tons. The Italian government is looking for a bidder that can restore production as close as possible to full capacity.
Baku Steel, which operates an 800,000-ton capacity plant in Azerbaijan, pledged to bring a floating regasification unit to Taranto, likely a key factor in securing the bid. Azerbaijan has become Italy’s second-largest gas supplier, strengthening energy ties between the two nations. Baku Steel manufactures square and round bars, rebars, seamless pipes, ferro-silicon, channels, angles, I-beams, and wire rods